Deviation and Fundamental Breach of Research Proposal

Excerpt from Research Proposal :

e. By salving the ship and cargo) (IMO, 1989). This was to acknowledge the need to treat environmental degradation as a global problem and to encourage sustainable practices on the part of all contractual parties involved international shipping.

Damage to the environment is defined as "substantial physical damage to human health or to marine life" and under the Convention the awarded "compensation consists of the salvor's expenses, plus up to 30% of these expenses if, thanks to the efforts of the salvor, environmental damage has been minimized or prevented (SCOPIC, 2007). The salvor's expenses and financial distress are defined as "out-of-pocket expenses reasonably incurred by the salvor in the salvage operation and a fair rate for equipment and personnel actually and reasonably used" (SCOPIC, 2007). The tribunal or arbitrator between the two parties alleging a breach of contract "may even reward 100% of the agreed upon sum, in light of the salvor's actions, "if it deems it fair and just to do so" but if "the salvor is negligent and has consequently failed to prevent or minimize environmental damage, special compensation may be denied or reduced" (IMO, 1989).

The International Convention on Salvage 1989 was warmly welcomed by the maritime community, as was the SCOPIC clause which "introduced a tariff to calculate the Contractor's Special Compensation together with an uplift fixed at 25%....Special Casualty Representatives (SCR) and Representatives for hull and cargo were introduced and marine property underwriters' access to information about the services was improved" (New SCOPIC Rates Introduced, 2007). Although the SCOPIC clause and the overall rules of the Convention are still contentious, given their relative novelty, no nation that acknowledges the Hague Rules has made any serious calls for substantial reformation of their core principles.

Works Cited

"Chapter 5: Fundamental breach, deviation, quasi-deviation, and rupture of the contract."

July 8, 2009.

http://www.scribd.com/doc/7263242/Fundamental-Breach-Deviation-Deviation-And

"International Convention on Salvage, 1989." International Maritime organization (IMO).

July 8, 2009. http://www.imo.org/TCD/mainframe.asp?topic_id=259&doc_id=687

"New SCOPIC Rates Introduced." July 2007 Lloyd's. 2007. July 8, 2009.

http://www.lloyds.com/Lloyds_Worldwide/Lloyds_Agents/Salvage_Arbitration_Branch/SCOPIC.htm

"SCOPIC." Lloyd's. 2007. July 7,…

Sources Used in Document:

Works Cited

"Chapter 5: Fundamental breach, deviation, quasi-deviation, and rupture of the contract."

July 8, 2009.

http://www.scribd.com/doc/7263242/Fundamental-Breach-Deviation-Deviation-And

"International Convention on Salvage, 1989." International Maritime organization (IMO).

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